U.S. crypto lobbyists in push to contain fallout from stablecoin meltdown

FILE PHOTO: Smartphone with Tether logo is placed on displayed U.S. dollars in this illustration taken, May 12, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

WASHINGTON (Reuters) - The cryptocurrency industry is scrambling to respond to U.S. lawmakers' concerns about stablecoins following the collapse of TerraUSD, which wiped billions off the cryptocurrency market.

The Blockchain Association and the Chamber of Digital Commerce, which represent some of the most influential crypto companies, say they have been fielding a flurry of questions from Capitol Hill since TerraUSD, known as "UST," broke its peg last week and crashed 90%.